Massachusetts is a state where history meets innovation. From cobblestone streets in Salem to converted mill lofts in Lowell, the Commonwealth’s deep architectural heritage is a cornerstone of its charm — and a growing driver of real estate value.

Thanks to a series of state and federal historic tax credit programs, property owners are finding new financial reasons to restore and repurpose historic buildings. These incentives are not only preserving Massachusetts’ architectural legacy but also reshaping how real estate listings highlight the balance between historic charm and modern comfort.

1. What Are Historic Tax Credits?

Historic tax credits are financial incentives designed to encourage the rehabilitation of historically significant properties.

Federal Historic Tax Credit (HTC)

The federal program provides a 20% income tax credit for the certified rehabilitation of income-producing historic buildings listed on the National Register of Historic Places.

Massachusetts Historic Rehabilitation Tax Credit (MHRTC)

At the state level, the Massachusetts Historic Commission offers an additional 20% tax credit, often paired with the federal program, to further encourage restoration projects.

Together, these programs can significantly reduce renovation costs — sometimes covering up to 40% of qualified expenses — making preservation projects more feasible for developers, investors, and even homeowners.

2. The New Appeal of Historic Properties

Historic properties used to come with a reputation for being costly to maintain and difficult to modernize. But today, they’re enjoying a renaissance.

Thanks to these incentives, more developers are turning old schools, mills, and churches into residential units and mixed-use spaces. The results are properties that combine:

• Authentic period architecture (exposed brick, beams, stained glass)

• Contemporary comforts (high-speed internet, smart thermostats, energy-efficient windows)

• Prime locations often within Massachusetts’ most walkable town centers

This blend of heritage and high-tech living is a major selling point — one that real estate agents are now emphasizing in their listings.

3. How Historic Preservation Incentives Are Changing Listing Descriptions

Real estate listings are increasingly showcasing the narrative and character of properties that have benefited from historic preservation programs. Instead of focusing solely on square footage or price, agents now highlight features such as:

• “Tax-credit eligible historic restoration with modern amenities”

• “Lovingly preserved 19th-century architecture in a fully updated home”

• “Energy-efficient systems installed under MHRTC guidelines”

• “National Register-listed property with federal rehabilitation certification”

These phrases don’t just describe a home — they tell a story of preservation, investment, and sustainability that resonates with buyers seeking something special.

4. Why Buyers and Investors Are Paying Attention

Homes that qualify for or have undergone historic rehabilitation are often located in Massachusetts’ most desirable neighborhoods — places like Cambridge, Newburyport, and Northampton, where community character and walkability are key attractions.

For buyers, this means:

• Unique architecture and craftsmanship unavailable in newer builds

• Potential long-term appreciation in value due to limited supply

• Prestige of owning a piece of history

For investors, historic tax credits offer an appealing way to offset renovation costs while revitalizing underused properties — particularly in mill towns and urban centers seeking economic growth.

5. Balancing Preservation with Modern Living

One of the biggest challenges — and opportunities — in Massachusetts real estate today is achieving modern living within historic walls.

Developers are blending old-world aesthetics with new technologies, using strategies like:

• Retrofitting for energy efficiency while preserving facades

• Integrating smart home systems into traditional layouts

• Designing open-concept interiors inside historic shells

The result is a new property category that’s both authentic and adaptable — offering buyers a lifestyle that honors the past without sacrificing the conveniences of the present.

6. A Win-Win for Communities and the Market

Beyond individual properties, these incentives are helping revitalize Massachusetts’ town centers. Restoring historic buildings attracts new residents and businesses, boosts local tourism, and strengthens community identity — all while keeping Massachusetts’ historic character alive.

For real estate professionals, this trend offers a fresh marketing angle. A listing that tells a story of preservation, community, and sustainability stands out in today’s crowded digital marketplace.

Massachusetts’ historic tax credit programs are doing more than preserving buildings — they’re shaping the state’s real estate narrative. The fusion of historic preservation and modern living is transforming not only the physical landscape but also how homes are presented, marketed, and valued.

In the evolving housing market, listings that celebrate both heritage and innovation aren’t just beautiful — they’re powerful examples of how history continues to enrich Massachusetts’ future.

Matt Witte strives to be the best realtor in Andover, MA.

Any questions about real estate, reach out to Matt Witte, Andover Realtor, MA